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Board reviews FY26 projections; STARS Act payments, overbase levy and staffing changes narrow options
Summary
District finance staff presented a narrowed set of FY26 budget projections on May 27, folding in the STARS Act quality educator payment, using a TIF remittance to increase the overbase levy to maximum budget, and identifying staffing and benefits changes that left a modest net positive in the projection.
District finance staff presented a narrowed set of fiscal‑year 2026 budget projections at the May 27 board meeting, highlighting several revenue and expenditure changes that will shape the board’s decisions before budget adoption in August.
Pat McHugh told trustees the district incorporated the state STARS Act quality educator payment (QEP) into its revenue estimates and adjusted the overbase levy after a TIF remittance allowed the district to reach its maximum budget capacity. McHugh said the QEP incorporation and other adjustments increased the district’s allocation compared with earlier presentations, and cited a combined increase figure shown in the packet.
On the expenditure side, McHugh said staff adjusted salary and benefit estimates, including an increased district contribution to health insurance of $25 per eligible employee per month (estimated about $182,000). The packet consolidated certified staff changes into single line items for clarity, and included funding for three new positions in an early literacy program along with five English‑learner programs and a grant specialist. McHugh said after those changes the projections show a “net positive of $63,000.”
Board members pressed staff on what the small positive balance represents. Several trustees noted one‑time funds and limited reserves constrain the board’s ability to convert small surpluses into permanent hires. Trustee F. Garris warned that “$63,000 on paper…does not mean there’s actually $63,000 there of available to spend,” citing the risk of opening “Pandora’s box” of requests from across schools.
Trustees also discussed the district’s experience modification (eMod) for workers’ compensation. Superintendent Hill and McHugh noted steady improvement in the eMod factor from 1.44 in 2022 to 1.11 projected for the coming year, which McHugh estimated would yield “a little over a hundred thousand dollars in premium savings” compared with last year.
Staff told trustees the projection package also includes federal program offsets to maintain services (FIT/FRC funding), partial grant‑funded positions covered in part by general fund dollars, and a reclassification of a Bridal School TOSA to assistant principal. McHugh said any final staffing or program decisions remain subject to collective bargaining outcomes and enrollment counts.
Ending: The FY26 projections were presented as information only; trustees asked staff to return with updated, school‑level details and a clearer accounting of one‑time vs. recurring resources before formal budget adoption.
